Form 4: AppFolio Director Converts Class B Shares to Class A

AppFolio Inc. Director Maurice J. Duca converted a significant number of Class B Common Stock shares into Class A Common Stock, both directly and through various trusts and LLCs.

Summary

• Maurice J. Duca, a Director and 10% Owner of AppFolio Inc. (APPF), converted Class B Common Stock into Class A Common Stock on November 4, 2025.
• A total of 40,210 Class B shares were directly converted to Class A shares.
• An additional 5,000 Class B shares were converted to Class A shares indirectly through a Family Trust.
• Furthermore, 118,124 Class B shares were converted to Class A shares indirectly through a Pension Trust.
• The conversions were executed at a price of $0 per share, as it represents a change in share class rather than a sale or purchase.
• Class B shares are convertible into Class A shares on a one-for-one basis at the holder's option and automatically convert upon sale or transfer, with specific exceptions for certain partnership/LLC transfers and qualified recipients.
• All outstanding Class B shares will automatically convert to Class A shares if they represent less than 10% of the sum of AppFolio's outstanding Class A and Class B shares.

Sentiment

Score: 5

Explanation: This filing reports a routine insider conversion of Class B to Class A shares, which is a common practice and does not inherently indicate positive or negative sentiment about the company's performance or future prospects.

Positives

• The conversion of Class B shares to Class A shares can increase the liquidity of the shares for the holder, as Class A shares are typically more widely traded.

Future Outlook

NA

Industry Context

NA

Related Party Transactions

• Conversion of Class B shares to Class A shares by a Family Trust where Maurice J. Duca is the reporting person.
• Conversion of Class B shares to Class A shares by a Pension Trust where Maurice J. Duca is the sole trustee, possessing sole voting and dispositive power but disclaiming pecuniary interest.
• Beneficial ownership of Class A and Class B shares by IGSB Cardinal I, LLC, IGSB Gaucho Fund I, LLC, and IGSB Cardinal Core BV, LLC, where Maurice J. Duca is the managing member, possessing sole voting and dispositive power but disclaiming pecuniary interest except to the extent he may have therein.
• Beneficial ownership of Class B shares by a Charitable Remainder Trust where Maurice J. Duca is a co-trustee, sharing voting and dispositive power but disclaiming pecuniary interest.

Stakeholder Impact

• Shareholders: The conversion of Class B shares to Class A shares may slightly alter the voting power distribution over time as Class B shares typically carry higher voting rights. However, this is a standard conversion mechanism and does not represent a significant immediate impact.

Key Dates

Keywords

AppFolio, APPF, Form 4, Insider Transaction, Stock Conversion, Class A Common Stock, Class B Common Stock, Maurice J. Duca, Beneficial Ownership